RBI Proposes Linking BRICS Digital Currencies to Ease Cross-Border Payments

The Reserve Bank of India has proposed to link the Central Bank Digital Currency (CBDC) of the BRICS countries to ease cross-border trade and payments, Reuters reported exclusively. RBI has recommended that the government propose this interlinking at the forthcoming 2026 BRICS Summit, which will be hosted by India. 

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Linking CBDCs: Points to be Discussed in BRICS Summit

According to reports, the proposal of connecting digital currencies comes against the backdrop of tariff threats and geopolitical issues of the U.S. The proposal is aimed at reducing the reliance on the U.S dollar for cross-border trade. 

However, Reuters reported that some of the participating countries are still hesitant about taking the transactions to technology and digital platforms . Worries that hover include imbalanced trade volume.

So, the Summit will also discuss the methods to facilitate and to make the linkage of digital currencies successful. These important discussions include methods like interoperable technology, effective governance rules, and ways to deal with the imbalance of the trade volume. 

Moreover, the news report mentioned that one of the ways of solving the imbalanced trade volume is to consider a bilateral foreign exchange swap.

Backdrop of the U.S. Trade-War and Threats

In the 2025 BRICS Summit in Rio de Janeiro, the idea of encouraging interoperability between the participating countries was highlighted to expedite cross-border payments and transactions. RBI had shown interest in connecting India’s digital currency, e-rupee, with the CBDCs of other countries to ease cross-border trade. However, it clearly stated that this initiative was to promote the Indian digital currency in global trade, not de-dollarisation. 

This move might irk Donald Trump amidst the ongoing trade-war, geopolitical issues, and tariff threats. The U.S. has earlier publicly declared that BRICS alliances are “Anti-American”. 

More information on this connection of BRICS digital currencies is awaited.